Business, 06.05.2020 06:37 antboogie7615

Blue Incorporated leases a piece of equipment to Larkspur Corporation on January 1, 2020. The lease agreement called for annual rental payments of $4,569 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 6 years, a fair value of $24,300, a book value of $19,300, and both parties expect a residual value of $8,250 at the end of the lease term, though this amount is not guaranteed. Blue set the lease payments with the intent of earning a 4% return, and Larkspur is aware of this rate. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature.

Required:
Determine the nature of the lease to both Blue and Larkspur.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 18:30

Shareholders of tesla recently expressed concerns that elon musk should give up some of his power on tesla's board by appointing two independent directors. which of the following is not a reason why elon musk is perceived to have significant power over tesla's board? 1. he is the founder of the firm and a successful entrepreneur, thus board members may be hesitant to challenge him.2. as the ceo and chairman of the firm he can easily determine what the board should discuss and how it should vote on strategic issues.3. all board members, except for kimbal, have been appointed to the board during elon's tenure.4. many of the firm's directors are outsider investment managers whose interests would not be aligned with those of firms' shareholders.

Answers: 3

Answer

Business, 22.06.2019 15:30

Uknow what i love about i ask a dumb question it is immediately answered but when i ask a real question it take like an hour to get answered

Answers: 2

Answer

Business, 22.06.2019 19:50

On july 7, you purchased 500 shares of wagoneer, inc. stock for $21 a share. on august 1, you sold 200 shares of this stock for $28 a share. you sold an additional 100 shares on august 17 at a price of $25 a share. the company declared a $0.95 per share dividend on august 4 to holders of record as of wednesday, august 15. this dividend is payable on september 1. how much dividend income will you receive on september 1 as a result of your ownership of wagoneer stock

Answers: 1

Answer

Business, 23.06.2019 00:10

Kcompany estimates that overhead costs for the next year will be $4,900,000 for indirect labor and $1,000,000 for factory utilities. the company uses direct labor hours as its overhead allocation base. if 100,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate?

Answers: 3

Answer

You know the right answer?

Blue Incorporated leases a piece of equipment to Larkspur Corporation on January 1, 2020. The lease...

Questions